Airlines race to provide in-flight Internet access

By Kyle Peterson

CHICAGO (Reuters) - U.S. airlines, racing to bring the Internet to domestic skies, hope that it will generate not only buzz but revenues.

"If they can charge for it they will. They're looking at every revenue source they can," Terry Trippler, travel expert at industry website TripplerTravel.com, said on Thursday. "

AMR Corp's American Airlines says it will be the first major U.S. carrier to feature it in-flight Internet access.

The No. 1 U.S. carrier said it will test AirCell's broadband Internet service next year on 15 planes that usually fly transcontinental routes. AirCell Chief Executive Jack Blumenstein said the company can offer Internet access for about $10 per user.

"This is rapidly going to proliferate across all commercial aviation," he said.

The airline industry, battered by low-fare competition and soaring costs, has derived some stability from a strategy that unbundles products and services that once were included in the price of a ticket.

Major carriers have introduced new food, products and entertainment for sale on planes. They are making a greater effort to lure business travelers with plush accommodations such as fully-reclining seats.

JetBlue Airways said it has partnered with Yahoo Inc and Research In Motion earlier this month to offer free, in-flight, wi-fi web connections for laptop computers and advanced cell phones.